Union Bank of Nigeria (UBN) said on Wednesday it has opened bids for its 50 billion naira rights issue to existing shareholders.
The bank said the bid which is opened for subscription on Sept. 20 will close on Oct. 30. According to a notice, the bank plans to sell 12.1 billion shares at 4.10 naira each, issuing five new shares to investors for every seven already held.
Union Bank, set up 100-years ago, said it planned to spend 80 percent of the funds to enhance its regulatory capital and boost working capital.
The lender, in which Atlas Mara Ltd, the African investment vehicle of former Barclays boss Bob Diamond, owns a 22.1 percent stake, has said it planned to raise funds also to tap opportunities to lend to agribusinesses.
At last Mara in June said it was raising $200 million to increase its stake in Union Bank and other businesses. It said at the time it was buying a 13.4 percent stake in the Union Bank from Clermont Group, taking its total holding to 44.5 percent.
Clermont International is among a consortium of local and foreign investors that own 65 percent, Union Bank said in its rights circular, adding that it was not aware of any investor trying to acquire a majority stake.
Union Bank was a former unit of Barclays Bank.
Shares in Union Bank, which have gained 9.1 percent so far this year, fell 4.67 percent on Wednesday to 5.70 naira on the Lagos bourse, a 28 percent premium to the rights price.
Union Bank, set up 100-years ago, said it planned to spend 80 percent of the funds to enhance its regulatory capital and boost working capital.
The lender, in which Atlas Mara Ltd, the African investment vehicle of former Barclays boss Bob Diamond, owns a 22.1 percent stake, has said it planned to raise funds also to tap opportunities to lend to agribusinesses.
At last Mara in June said it was raising $200 million to increase its stake in Union Bank and other businesses. It said at the time it was buying a 13.4 percent stake in the Union Bank from Clermont Group, taking its total holding to 44.5 percent.
Clermont International is among a consortium of local and foreign investors that own 65 percent, Union Bank said in its rights circular, adding that it was not aware of any investor trying to acquire a majority stake.
Union Bank was a former unit of Barclays Bank.
Shares in Union Bank, which have gained 9.1 percent so far this year, fell 4.67 percent on Wednesday to 5.70 naira on the Lagos bourse, a 28 percent premium to the rights price.
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